What’s That Term: API (Application Programming Interface)
Written By: Jon Kotman
If you’ve ever heard someone say, “We’ll just connect to their API,” and nodded along without fully knowing what that meant, you’re not alone. In today’s tech-driven world, APIs (Application Programming Interfaces) are everywhere, quietly powering the tools and platforms we use every day. But what exactly is an API, and why should you care? In this post, we’ll break down what an API is, where you’ve likely encountered one before, and the best practices for using them effectively in your business.
What Is an API?
An API, or Application Programming Interface, is a set of rules and tools that allow different software applications to communicate with each other. It acts like a messenger that takes requests, tells a system what you want to do, and then returns the response back to you.
Imagine you’re at a restaurant. The menu represents the API—it lists all the options you can request. The kitchen is the system that prepares your order. You don’t walk into the kitchen yourself; instead, you tell the waiter (the API) what you’d like, and they handle the back-and-forth between you and the kitchen. When your meal is ready, the waiter brings it back. You didn’t need to know how the kitchen works—you just used the menu.
In technical terms, APIs allow developers to access specific features or data from another service without needing to understand its inner workings. Whether it’s displaying real-time weather data, processing a payment, or logging in with your Google account, APIs are working behind the scenes.
There are several kinds of APIs:
Web APIs (like REST or SOAP), which are accessed over the internet
Internal APIs, used within an organization to connect services privately
Third-party APIs, provided by external vendors to enhance functionality
At their core, APIs are about efficiency, integration, and innovation—allowing your business to leverage powerful tools without building everything from scratch.
Where You’ve Heard It Before
Even if you haven’t realized it, you’ve almost certainly encountered APIs in your daily work or personal tech use. They're quietly running in the background, making your digital experience smoother, faster, and more connected.
Business Tools and Integrations
APIs are what make your software play nicely together. Ever connected your calendar to Zoom, your CRM to your email platform, or your accounting software to your bank account? That seamless flow of data is powered by APIs. Without them, you'd be stuck manually entering the same data in multiple places.
Apps and Online Services
When you use your Facebook or Google account to log into another app, that's an API at work—specifically, an authentication API (OAuth). When you check the weather on your phone or stream music through Spotify on a smart speaker, you’re relying on APIs to retrieve and deliver that information in real time.
In the IT and Development World
APIs are a key part of how developers build modern applications. Let’s say your business uses a cloud-based ERP system. If you want to add functionality like pulling customer data into a dashboard or syncing with a sales tool, your developers will likely use that ERP system’s API to make it happen. It’s how systems talk to each other without exposing sensitive infrastructure.
In the News
You might’ve heard the term pop up in tech headlines, like when a platform limits access to its API or changes how developers can use it. Twitter/X, for example, made headlines by restricting free API access, which impacted many third-party apps and services that relied on it.
From convenience at home to powerful automations at work, APIs are all around us—helping your tools collaborate, your data stay in sync, and your tech stack stay lean and efficient.
Best Practices for Using or Managing APIs
Whether you’re integrating a third-party service or developing your own internal tools, following best practices for API usage can make the difference between a secure, stable system and a tech headache. Here are some core principles to keep in mind:
1. Prioritize Security
APIs are doorways into your systems, so it’s essential to lock them properly. Always use secure authentication methods like API keys, OAuth, or token-based systems. Never expose credentials or sensitive information in the code, URLs, or public repositories.
2. Choose Well-Documented APIs
Good documentation saves hours of frustration. Look for APIs that provide clear instructions, usage examples, and error explanations. This is especially critical when troubleshooting issues or onboarding new developers.
3. Understand Rate Limits and Quotas
Most APIs have usage limits—how many requests you can make in a given time period. Exceeding those limits can break functionality or even temporarily block access. Be aware of these thresholds and build your application to respect them.
4. Handle Errors Gracefully
APIs aren’t infallible—servers go down, networks fail, or invalid data gets sent. Make sure your system is built to recognize and handle errors properly (e.g., retries, fallback responses, or user-friendly error messages).
5. Monitor Versioning
APIs evolve, and older versions are sometimes deprecated. Keep an eye on version updates so you’re not caught off-guard by sudden changes or disruptions. Choose APIs that maintain backward compatibility or give ample notice for updates.
6. Track Performance and Uptime
APIs can affect your application's speed and reliability. Monitor API latency and response times, and avoid depending on unreliable third-party services for mission-critical functions.
7. Avoid Overdependence
While APIs unlock great functionality, overreliance on too many external services can introduce risk. If an API goes down or changes unexpectedly, it could affect your entire workflow. Make sure you have contingency plans in place.
Why APIs Matter for Small and Mid-Sized Businesses
For small and mid-sized businesses (SMBs), agility, efficiency, and cost-effectiveness are critical, and APIs deliver on all three. While APIs may sound like something only big tech firms need to worry about, they can actually be game-changers for growing companies looking to scale smartly.
Streamlining Operations
APIs eliminate the need for manual data entry and repetitive tasks by enabling your software tools to talk to each other. Imagine customer information from your website automatically flowing into your CRM, your email platform, and your invoicing software—all without lifting a finger. APIs make this kind of automation possible, saving time and reducing errors.
Enhancing Customer Experience
Want to offer real-time shipping updates, online booking, or personalized product recommendations? APIs allow you to add these features by connecting with third-party services that already specialize in them. Instead of building everything from scratch, you can plug into trusted platforms and deliver a modern, seamless experience to your customers.
Unlocking Innovation Without Heavy Lifting
With APIs, SMBs can leverage the power of cutting-edge tools—think AI, analytics, e-commerce, or cybersecurity—without needing massive in-house development teams. APIs give you access to robust, scalable capabilities through simple integrations, leveling the playing field with larger competitors.
Driving Informed Decisions
APIs make it easy to gather and centralize data from multiple systems into dashboards or business intelligence tools. That means faster, smarter decisions based on up-to-date, synchronized information.
At Kotman Technology, we believe APIs are more than just technical jargon—they’re strategic assets. With the right approach, APIs help SMBs move faster, serve customers better, and stay competitive in a constantly evolving digital landscape. Let us help you discover how APIs can power your next phase of growth.
Conclusion
APIs may work behind the scenes, but their impact is front and center, enabling smarter workflows, better customer experiences, and scalable growth. Whether you're integrating tools, automating processes, or exploring new tech solutions, understanding APIs gives your business a serious edge.
Not sure where to start? Kotman Technology is here to help you evaluate, implement, and manage the right API solutions for your business. Let’s build something smarter—together.
Kotman Technology has been delivering comprehensive technology solutions to clients in California and Michigan for nearly two decades. We pride ourselves on being the last technology partner you'll ever need. Contact us today to experience the Kotman Difference.